NATIONAL SPORTS LAW NEGOTIATION COMPETITION 2015 · to discuss a PDC relationship to begin in...

Judges’ Instructions forThe Final Round

NATIONAL SPORTS LAW NEGOTIATION COMPETITION

2015

22 NSLNC 2015 Final Round © 2015, Thomas Jefferson Center for Sports Law and Policy

MLB/MiLB PLAYER DEVELOPMENT CONTRACTS

• As per Rule 56 of the MLB Rules, the exclusive contractual relationship between major league (MLB) and minor league (MiLB) baseball clubs• MLB provides a standard form letter that both parties sign to

establish this relationship

• What is the purpose of a MLB/MiLB Club Relationship?• Allows for the establishment of a “farm system” to develop

players before they are ready for the major leagues

• MLB has the most comprehensive minor league system in all of sports, with five levels of leagues (AAA, AA, A, Short-Season A, Rookie)

BACKGROUNDRound 3 – Deuces Wild


MLB/MiLB PLAYER DEVELOPMENT CONTRACTS

• PDC relationships are heavily restricted by MLB to avoid corruption• Clubs can only sign two or four year PDCs, and can only

form/disband relationships in even-numbered years (2014, 2016 etc.)

• MLB clubs cannot offer (and MiLB clubs cannot solicit) economic benefits in connection to a PDC• No money can change hands except for the limited player

development purposes defined in Rule 56

• This includes the playing of exhibition games in the MiLB club’s city

• Breaking this rule subjects the MLB club to a $500,000 fine, and the MiLB club to a $100,000 fine

BACKGROUNDRound 3 – Deuces Wild


• Minnesota Twins

• Major League Baseball club located in Minnesota

• Currently AAA affiliate is the Rochester (NY) Red Wings

• For this fact pattern, the Red Wings have notified the Twins that they will start a relationship with the New York Mets starting in 2017

• Las Vegas 51s

• Minor League Baseball club located in Las Vegas

• Current AAA affiliate of the New York Mets

• Have had significant trouble keeping a MLB affiliate for more than a few years; they have had 3 different affiliates in the past 15 years

• Why? Their ballpark (Cashman Field) is now over 30 years old and is considered one of the worst ballparks in baseball

BACKGROUNDThe Parties


The clubs have received permission from MLB/MiLBto discuss a PDC relationship to begin in October 2016

1. Will the 51s remain in Cashman Field (or if not, will they stay in Las Vegas or move to Edmonton?)

2. If the 51s stay in Las Vegas, how will they allocate their $2 million budget for improvements?

• Needs include: Moving back outfield walls, constructing a humidor, new weight room facilities, indoor batting cages, water features for fans and additional security\

3. Will the Twins give the 51s special accommodations for player development and on-field coaches?

Issues to be Negotiated


Issues Twins 51sZone of Possible

Agreement

Will the

51s stay

in

Cashman

Field?

Cashman is a drawback to

signing with the 51s due to its

lack of important player

development facilities like weight

rooms and indoor batting cages,

plus the heat and the fact that it

is in a bad area. If a new stadium

cannot be secured, would like to

see the 51s move to Edmonton,

where weather conditions are

more like Minnesota.

Sees a strong future in

Las Vegas, but a new

stadium is not on the

horizon due to political

issues. Knows that

Cashman Field is

inadequate and has

budgeted $2 million for

improvements.

With the $2 million

budget for

improvements, the

51s and Twins can

agree to changes

that will make

Cashman a better

location for Twins’

prospects.

SPECIFIC ISSUES AND INSTRUCTIONS



Agreement

Priority of

Improvements

Focus should be on

making the park play

more like Target Field,

including adding a

humidor to counter the

dry air and expanding

the outfield fences to

mimic or exceed Target.

Also wants to see new

weight room and indoor

batting cages.

Focus should be on

making the park better

for fans, including

adding water features,

more security and

misters in dugouts and

stands. Would like to

use the balance to

accommodate the Twins’

needs.

Allocating the $2

million budget to

accommodate both

clubs’ needs.



NUMBERS THAT THE TEAMS HAVE TO WORK WITH

Category Item Cost

Outfield

Walls

Adjusting all outfield walls beyond Target Field specifications $1,500,000

Adjusting all outfield walls to Target Field specifications $1,250,000

Adjusting LF and RF walls beyond Target Field specifications $750,000

Adjusting LF and RF walls to Target Field specifications $500,000

Baseball

Operations

Construction of a humidor room in Cashman Field $750,000

State of the Art Weight Room Facilities $500,000

Indoor Batting Cage (each) $250,000

Stadium

Improvements

Construction of a kids park beyond the outfield fences $1,000,000

Adding additional seating and a pool beyond the outfield fences $750,000

Additional security for 72 home games $250,000

Misters in the stands and dugouts for 72 home games $250,000


SOME NECESSARY MATHSo You Don’t Need a Calculator

Possible Combinations (EXAMPLES)

Item Cost

Adjusting LF and RF walls beyond

Target Field specifications$750,000

Construction of a humidor $750,000

Weight Rooms $500,000

TOTAL $2,000,000

Item Cost

Adjusting all OF walls to

Target Field specifications$1,250,000

Indoor Batting Cages (2) $500,000

Additional Security $250,000

TOTAL $2,000,000

Item Cost

Adjusting LF and RF walls to


Indoor Batting Cages (2) $500,000

Construction of a kids’ park $1,000,000

Misters in the stands & dugouts $250,000

TOTAL $2,000,000

Item Cost

Adjusting LF and RF walls to


Weight Rooms $500,000

Additional Seating + Pool $750,000

Additional Security $250,000

TOTAL $2,000,000



Agreement

On-Field

Personnel

(Players)

Has exclusive control

under Rules. Very

conservative with

player development

and will always put

MLB needs first.

Would like to see the

Twins ensure top

prospects and

rehabbing stars play

in Las Vegas.

None; one team will

have to compromise.

On-Filed

Personnel

(Coaching Staff)

Willing to be flexible to

give 51s some input,

but wants to ensure

that the coaching staff

fits with the “Twins

Way” of player

development

Would like the Twins

to hire Las Vegas-

native Jason Giambi

to coach the team

starting in 2017

Giambi, as an

admitted steroid user

and non-Twin, will be

a tough sell for the

Twins. One team will

have to compromise.



LEVERAGE POINTS

• Best Alternative to a Negotiated Agreement (BATNA)

• Minnesota TwinsAnother AAA affiliate closer to home with a better ballpark opens up (very unlikely as per facts).

• Las Vegas 51sAnother MLB affiliate with a more consistent philosophy opens up (very unlikely as per facts).

• Worst Alternative to a Negotiated Agreement (WATNA)

• Minnesota TwinsThe Twins are forced into a standard 2-year PDC next October with the 51s anyway, but under current conditions.

• Las Vegas 51sThe 51s are forced into a standard 2-year PDC next October with the Twins anyway, but under current conditions.


This is a problem designed to allow the parties to reach a deal, but only if they want to.

Plenty of potential outcomes, but plenty of hurdles that must be passed in order to reach them.

The parties need to cross a few bridges before any deal can happen.

• How much will the Twins force Edmonton relocation on the 51s, who likely will not want to move?

• How flexible will the 51s be with giving the Twins a say with their stadium budget, for what may just be a two-year relationship?

• How flexible will the Twins be with the player development?

POTENTIAL OUTCOMESHow WE Envision It


• Teams must be able to give up strong positions quickly in order to reach an area where a deal is actually possible.• Twins: Trying to convince the 51s to move to Edmonton

if they cannot get a new stadium

• 51s: Giving up on player development concerns

• Keep in mind: the teams have only had this problem since about 6:00pm last night• The 51s have no facts leading them to the Edmonton

issue, which the Twins’ facts stress is fairly important

• Lots of numbers and budgets in play – how well can they adapt to unexpected facts and positions?

WHAT DEFINES A GOOD TEAM?

NATIONAL SPORTS LAW NEGOTIATION COMPETITION

2015

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